- Uganda has approved local participation in Dangote Petroleum Refinery’s IPO.
- Access in Uganda is restricted to professional and high-net-worth investors.
- SBG Securities Uganda is currently the authorised intermediary for the offer.
- Kenya approved a Global Depository Receipt structure for eligible investors.
- The Nigerian share sale involves 4.1 billion shares priced at 525 naira each.
- The IPO is targeting about $1.6 billion and closes on October 13.
- The Nigerian IPO is separate from Dangote’s planned refinery project in Lamu, Kenya.
Ugandan investors have joined Kenyans in gaining a regulated route into Dangote Petroleum Refinery’s ongoing initial public offering, although access in Uganda has been limited to a specific class of investors.
The Capital Markets Authority Uganda approved the marketing and distribution of the Nigerian refinery’s shares on October 6. The regulator has restricted participation to professional and high-net-worth investors and barred mass advertising or general public solicitation.
The move comes days after Kenya’s Capital Markets Authority approved a separate structure allowing eligible Kenyan investors to participate through Global Depository Receipts.
Under the Ugandan approval, investors must access the offer through a CMA-licensed intermediary that has received regulatory authorisation.
SBG Securities Uganda Limited is currently the only intermediary authorised to market and offer the shares in the country. The regulator said additional authorised intermediaries would be communicated where applicable.
Uganda’s CMA has also made clear that its approval should not be interpreted as a recommendation to invest. The authority has not assessed the commercial merits, financial viability or expected performance of the refinery investment.
Investors have instead been urged to consider the risks associated with the cross-border transaction, including currency movements, custody arrangements and taxation.
Kenya has taken a different approach to opening access to the same Nigerian share sale.
The Capital Markets Authority approved a short-form prospectus submitted by Renaissance Capital Kenya Limited on October 5. The arrangement will allow eligible Kenyan investors to participate through GDRs, which represent shares in a foreign company and can subsequently be listed on the Nairobi Securities Exchange subject to the required approvals.
Renaissance Capital Kenya is working with its Nigerian affiliate on custody arrangements and the creation of the GDRs after the IPO allocation process is completed.
The CMA also identified CPF Capital and Advisory, SBG Securities and Stanbic Bank, Francis Drummond, National Bank of Kenya and Access Bank, Sterling Capital, Kestrel Capital and AXYS Investment Bank among firms facilitating access through local or correspondent arrangements.
The Kenyan regulator has equally stressed that its approval is not an investment recommendation. Investors have been advised to study the short-form prospectus and seek independent professional advice before committing funds.
The IPO involves 4.1 billion shares priced at 525 naira each. If fully subscribed, the offer is expected to raise about 2.15 trillion naira, equivalent to approximately $1.6 billion.
The offer opened in September and is scheduled to close on October 13. The money raised is intended to support the planned expansion of the Lagos refinery, with capacity expected to increase from 700,000 barrels per day to 1.4 million barrels per day.
The refinery began commercial operations in 2024 and has since become an important part of Nigeria’s petroleum supply system. The IPO is being marketed as a broad ownership opportunity, although access conditions vary between jurisdictions.
Lamu Refinery Not Part of the IPO
The approvals in Kenya and Uganda have also created a need for clarity over which Dangote project investors are actually being offered shares in.
Kenya’s CMA has explicitly stated that the current transaction covers Dangote Petroleum Refinery and Petrochemicals FZE in Nigeria. It does not represent an offer of shares in the Dangote East African Petroleum Refinery and Petrochemicals project planned for Lamu County.
That distinction is important because Dangote is separately pursuing the proposed Lamu refinery project in Kenya. The current IPO therefore gives investors exposure to the existing Nigerian refinery, not the planned Kenyan development.
The regional approvals nevertheless highlight growing interest in cross-border investment opportunities involving major African companies.
